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Poland vs Ukraine: Software Development Industry Comparison

Posted Oct 15, 2020 Trends

The software development industry in Ukraine has reached the mark of 200,000 tech specialists, with about 85% of them working in software development companies. The IT industry in Poland counts 295,300 software development experts, 20% of whom are employed by companies that offer software development services.

Polish tech companies report increasing competition on the tech talent market. Meanwhile, in Ukraine, not only has the IT industry become one of the most favored employment destinations, it has also become the 2nd export service industry projected to earn $8.4 billion by 2025. 

Major Benefits of Working with Ukrainian Software Development Companies:

  1. The employer competition in Ukraine is lower than in Poland. Partially because there are fewer R&D offices of tech giants that tend to offer programmers inflated salaries.

  2. Most of the Ukrainian programmers have experience in providing software development services. Developers prefer working at tech companies that offer software development services rather than in businesses with their own digital products.

  3. Working with Ukrainian programmers can save you 30% of the total development cost without sacrificing the quality of code.

  4. Compared to Poland, the Ukrainian tech industry is more homogeneous. It’s got a greater number of outsourcing vendors that have accumulated deep expertise in providing software development services during the last two decades.

Buyer’s Guide to Outsourcing to Ukraine

Get best practices businesses need to know to outsource to Ukraine successfully

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Comparison: The Software Development Industry in Poland and Ukraine

Comparison of IT Industry in Poland and IT Industry in Ukraine

 UkrainePoland
Number of IT companies (Clutch)812 outsourcing companies in Ukraine697 outsourcing companies in Poland
Growth rate

2016 — 17.80%

2017 — 24%

2018 — 29.3%

2019 — 31.4%

2016 — 4.1%

2017 — 5.5%

2018 — 5.1%

Number of developers200,000 software development experts295,300 software development experts
Average developer rates$25–42 per hour$40–56 per hour
Developer salary/month

Junior — $1,000

Senior — $,5000

Junior — $2,000

Senior — $8,000

Large tech hubsKyiv, Kharkiv, Lviv, Dnipro, OdesaWarsaw, Kraków, Wrocław, Tricity, Łódź, Poznań, Katowice
R&D centers

Total 110 R&D offices: Amazon, Google, Microsoft, Boeing, Oracle, Huawei, Samsung, NetCracker, Wargaming

Total 400 R&D offices: Google, IBM, Motorola, ABB, SABRE, Delphi, Fujitsu, Capgemini, IBM, Motorola, Shell

With more tech businesses outsourcing to Ukraine, the IT industry in the country has been experiencing rapid growth: in 2017 it grew by 20%, in 2018 — by 26%, and in 2019 — by 30%. In 2020, it’s expected to generate $5.4 billion and in 2025 — $8.4 billion, according to the predictions by UNIT.City.

More than 700 business centers employ about 150,000 tech experts in the IT industry in Poland. By 2022, the industry is proposed to generate $13 billion in revenue. The software development sector is expected to grow by 7.2% annually, while the hardware industry will slow down to a 3.2% growth per year.

Number of Software Development Experts: Poland vs Ukraine

Ukraine has a strong educational base that allows it to grow its tech industry by 26% annually. Each year, about 30,000 students graduate from technical universities in Ukraine. As of 2020, there are about 200,000 tech specialists in Ukraine, including software developers, project managers, business analysts, quality assurance specialists, and other experts. It’s estimated that the market will increase to 250,000 tech workers by 2025.

Both Ukraine and Poland have been featured by Gartner, A.T. Kerney, and the World Bank among the strongest tech nations in CEE. According to the State of European Tech report, there are 4 developers per 1,000 people in Ukraine. A higher density of developers is seen in large Ukrainian tech hubs. In Kyiv, there are 11.7 software developers per 1,000 people, in Kharkiv — 9.7, in Lviv — 7.6, and in Dnipro — 4.8.

These are the cities with the largest numbers of programmers in Ukraine:

  1. Kyiv — 37%
  2. Lviv — 15%
  3. Kharkiv — 14%
  4. Dnipro — 8%
  5. Odesa — 5%

On the international arena, Ukraine is known as home to such large tech companies as SoftServe, Intellias, Luxoft, Daxx, Epam, and GlobalLogic. These and other companies develop world-class digital solutions for multinational businesses such as Mercedes and BMW.

In Poland, there are 1.4 software development experts per 1,000 people. Just like in Ukraine, Polish programmers reside in large IT hubs — Warsaw, Kraków, Wrocław, Tricity, Łódź, Poznań, and Katowice. In contrast to Ukraine, though, the minority of software development specialists in Poland work in the software development outsourcing industry.

The number of tech specialists and programmers in the largest IT hubs in Poland:

  1. Warsaw — 65,600 
  2. Kraków — 70,000
  3. Wrocław — 47,500
  4. Katowice — 23,700

The tech talent pool in Poland currently counts 295,300 tech experts, with only 20% of them being employed by tech companies that offer software development outsourcing services to international businesses. The majority of Polish software development experts work in FMCG industries, tech product companies, and multinational tech corporations.

IBM, Google, Motorola, SABRE, Motorola, Fujitsu, and Delphi are the key players and trendsetters on the Polish employment market. The tech giants fuel employer competition and attract top tech specialists, leaving small and middle-sized businesses only a small fraction of Polish software development specialists for hire.

What Are the Trending Software Development Technologies in Ukraine and Poland?

About 8,000 software development specialists in Ukraine indicated JavaScript as their major programming language, according to Daxx’s research based on data available on LinkedIn. There are also approximately 3,000 Python software development experts in Ukraine, 9,000 PHP developers, and 8,000 Java programmers. Such rare technologies as C, C++, TypeScript, Kotlin, and Go have gained popularity among software development gurus in Ukraine in the last two years. The combination of trending and rare skills of Ukrainian software developers make Ukraine a great outsourcing destination for tech businesses around the globe.

Top Popular Programming Languages in the IT Industry in Ukraine

Top Popular Programming Languages in the IT Industry in Ukraine

In Poland, software development experts follow the global trends and use similar programming languages as their counterparts in Ukraine. You can find a large number of software development specialists in Poland using popular coding languages, such as C#, Python, and JavaScript. PHP and RoR have dropped in popularity, and the market no longer can supply enough programmers having work experience with these technologies. Mobile software development experts in Poland usually use the Elixir, Kotlin, and React Native stack.

Top Popular Programming Languages in the IT Industry in Poland

Top Popular Programming Languages in the IT Industry in Poland

Developer Rates Comparison: Poland vs Ukraine

The average developer rates of entry-level software development specialists in Ukraine begin at $26 per hour. The average developer rate of a senior specialist in Ukraine is around $43 per hour. A middle-level software development specialist in Ukraine earns from $30 to $38 per hour.

Software Development Rates in Ukraine

Software Development Rates in Ukraine

The average developer rate of an entry-level software development specialist in Poland starts at $40 per hour. A senior software developer gets from $56 per hour and more. The developer rates in Poland are conditioned by the country’s membership in the European Union and geographical proximity to countries with developed economies.

Average Software Development Rates in the IT Industry in Poland

Average Software Development Rates in the IT Industry in Poland

Average Developer Salary in Ukraine and Poland

The average entry-level software development expert in Poland with 1–4 years of experience earns up to $48,873 (84,819zł), according to PayScale. The salary range of software development specialists in Poland provided by Indeed shows higher figures — an entry-level developer with 1 year or experience earns as much as $5,000 a month and $62,293 a year. A senior software development specialist in Poland with 3–5 years in the industry gets a monthly salary of $6,900, which adds up to $83,865 annually.

Average Software Development Expert Salary in the IT Industry in Poland

Average Software Development Expert Salary in the IT Industry in Poland

The average salary of a senior software development specialist in Ukraine is $4,000 a month and $48,000 a year. The average salary of a middle-level developer in Ukraine is  $2,500 a month, which adds up to $30,000 a year. According to SalaryExpert, an entry-level software development specialist in Ukraine earns around $1,500 a month and $18,000 a year.

Average Salary of a Software Developer in Ukraine

Average Salary of a Software Developer in Ukraine

Average Salary for Software Developer in Ukraine
Seniority LevelAverage Salary for JavaScriptAverage Salary for PythonAverage Salary for JavaAverage Salary for .NETAverage Salary for PHP
Junior$1300-$1900$1100-$2100$1100-$1900$1100-$2100$1100-$2200
Middle$1900-$3600$2100-$3600$1900-$2900$2100-$3600$2200-$3100
Senior$3600-$5000$3600-$4600$2900-$4600$3600-$4600$3100-$4600

Tech Nominations Ukraine and Poland Have Received by 2020

In the last decade, Ukraine has repeatedly made an appearance in international tech awards. Tech businesses, programmers, and technical universities have all received recognition from prominent institutions.

Tech Awards and Listings Related to Software Outsourcing in Ukraine

Tech Awards and Listings Related to Software Outsourcing in Ukraine

Global Outsourcing 100

About 20 tech companies from Ukraine were listed in the 2020 Global Outsourcing 100 compiled by the International Association of Outsourcing Professionals.

A.T. Kearney

Ukraine takes 20th position in the Global Services Location Index by A.T. Kearney. The country went up from 24th to 20th place in a year.

CEEOA, Outsourcing Journal, Schneider Group

Ukraine takes the 1st place among the largest IT outsourcing countries and software development centers in the Central-Eastern European region.

Global Sourcing Association

Ukraine was nominated as the Offshoring Destination of the Year for moderate software developer salaries and talent availability by the Global Sourcing Association.

Gartner

Ukraine got into the shortlist of the Top 20 Offshore Locations in IMEA and the Top 30 World Outsourcing Destinations in 2019

A.T. Kearney

In 2019, Ukraine took 1st place in A.T. Kearney’s Global Services Location Index for financial attractiveness and availability of tech talent.

World Bank

Currently, Ukraine takes 71st place in the World Bank’s Ease of Doing Business list. In 2019, the country moved up four positions.

Global Innovation Index

Ukraine is listed in the Global Innovation Index list among the Top 50 Most Innovative Countries.

Inc. 5000

In 2018, five Ukrainian tech companies were listed in Inc. 5000.

IAOP

More than twenty software outsourcing companies from Ukraine were listed in the 2020 Excellence in Strategic Partnerships list by IAOP.

 

Tech Awards and Listings Related to Software Outsourcing in Poland

A.T. Kearney

Poland took 24th position in the Global Services Location Index by A.T. Kearney in 2019.

Global Innovation Index

Poland was listed among the top 50 countries with the highest innovation index in the world and took 26th place in 2019.

Tholons Global Innovation Index

The Global Innovation Index by Tholons granted Poland 15th position in its list of fast-developing tech countries.

TopCoder Country Rating

Polish developers took 3rd place in Hacker Rank’s chart of top developers in the world in 2019.

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Why Do Businesses Choose to Outsource Software Development to Ukraine?

In recent decades, Ukraine has been listed among the most lucrative software outsourcing destinations in the world. Thanks to the steady growth in the number of specialists working in IT (both technical and non-technical), a high level of maturity of tech businesses, and close cultural and geographic proximity to Western European countries, foreign clients are able to establish long-lasting partnerships with Ukrainian tech vendors.

The majority of Daxx’s clients highlight the following benefits of working with Ukrainian software development companies:

  1. It takes 1–2 months to hire a software developer in Ukraine and a month to let them go if further cooperation isn’t necessary.
  2. The majority of outsourcing tech vendors share risks with their clients and undertake taxes, payroll, and other essential services.
  3. On the Ukrainian tech talent market, a client can find programmers with both popular and rare tech skills.
  4. The Ukrainian tech talent market offers a great quality-cost ratio, therefore foreign clients can hire high-class experts with affordable salary expectations .
  5. Ukrainian programmers are great communicators and about 48% of them have technical education.
     

Read more: 12 Reasons to Hire Ukrainian Software Developers for IT Outsourcing
 

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Kateryna Kachkovska

Content Marketing Manager

Kateryna is a Content Marketing Manager at Daxx driven to help business owners make data-based decisions. Feel free to contact her with offers on content promotion and collaboration.

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